811.20 Defense (M)/8–2549
The Acting Chairman of the National Security Resources Board (Steelman) to the Secretary of State
My Dear Mr. Secretary: The problems discussed in your letter of July 29, 1949, concerning the threatened modification of the stockpile program have been under serious consideration by the NSRB, the Bureau of the Budget, and the Munitions Board for the past several weeks. We feel that both the rescission of $275 million in contract authorization, and particularly the length of term of foreign contracts recommended in Senate Report No. 745, would be most unfortunate, and we have been working with the various agencies and the Congress in an attempt to secure appropriate changes therein.
In regard to the question of placing greater emphasis on domestic procurement of strategic and critical materials, we recognize that a healthy domestic mineral industry is a necessity, both for security in an emergency, and for the maintenance of a high level of the national economy. We also recognize the fact that most strategic and critical materials must, of necessity, be purchased abroad. Therefore, we feel that the present Munitions Board purchase program should continue in effect, thereby reducing our dependence in an emergency on sources of strategic and critical materials that could easily be denied to us by political changes or war.
Sincerely yours,